Environment

Question 1

What are ethics

Answer 1

Moral principles that govern the behaviour of an individual or organisation.

Question 2

Examples of a businesses ethics

Answer 2

Products - Are they products harmful to the people that consume them: Vapes, Cigarettes etc.

Suppliers - Do they pay their suppliers on time, or do they pay them at the last minute.

Staff - Are their staff treated well, or do they make their staff do things outside of their contract.

Question 3

Environmental issues affecting business

Answer 3

Recycling
Energy source / usage
Sourcing & usage of raw materials
Transportation
Packaging
Waste disposal

Question 4

Environments impact on costs

Answer 4

Increased costs of upgrading equipment: Electric cars etc.
Equipment to reduce emissions
Cost saving in terms of reduced consumption of electricity
The cost of negative publicity from their production or goods/ services having a negative effect on the environment.

Question 5

Environments impact on demand

Answer 5

Targeting ‘green’ consumers that are often willing to pay a premium so that they can buy goods or services that are good for the environment.

Question 6

Fair trade

Answer 6

Fair trade is a social movement whose stated goal is to help producers in developing countries achieve better trading conditions, and to promote sustainability.

Question 7

Impact on costs

Answer 7

Increase costs of raw materials - If the materials that a company is using are better for the environment, then the company will most likely have to pay more for those supplies.

Cost of monitoring suppliers - Checking that the supply that you’re getting from your suppliers is actually produced in a beneficial way to the environment or not, before putting the fair trade logo on your products.

Question 8

Impact on demand

Answer 8

Could lead to positive publicity, which could lead to a higher demand for the goods or services a company sells.
The company is able to sell their goods and services to more people (climate activists) as their goods and services are now good for the environment.
The company can now charge a premium price, as there products or services a good for the environment, and most people are willing to pay more for that benefit.